US banks are questioning the White House's report on stablecoin yields.

US Banks Push Back on White House Stablecoin Yield Report

US banks are pushing back on a White House stablecoin yield report, arguing its conclusions are based on the wrong question. A White House Council of Economic Advisers study found that banning stablecoin yields would have a minimal impact on bank lending, adding only about $2.1 billion in loans.

American Bankers Association chief economist Sayee Srinivasan and vice president Yikai Wang said the core policy concern is whether allowing stablecoins to earn yield could trigger deposit outflows—especially from community banks to larger institutions—raising funding costs and reducing local lending. The ABA acknowledged that the financial incentive to chase higher-yielding stablecoins would push households and businesses to move money out of banks. Crypto and banking interests are currently negotiating provisions in a Senate bill, with a ban on stablecoin interest payments a key sticking point.